South St. Louis County News

St. Louis Call Newspapers

South St. Louis County News

St. Louis Call Newspapers

South St. Louis County News

St. Louis Call Newspapers

Auditor reports fire district in good financial condition

Fire district’s tax rate lowest in county for past six years

The Mehlville Fire Protection District is in good financial condition, Robert Offerman of Hochschild, Bloom & Co. recently told the Board of Directors.

The Board of Directors voted unanimously to approve the district’s Comprehensive Annual Financial Report, audited by Hochschild, Bloom & Co., for the year ending Dec. 31, 2011.

Offerman said the district received an “unqualified opinion” on its 2011 financial statements — the best possible opinion that can be given.

of Achievement for Excellence in Financial Reporting from the Government Finance Officers Association for its 2010 financial statements. This is the 13th consecutive year the district has received this recognition. The district also will send its 2011 statements to the association for certificate qualification.

“… All in all, the district’s in good financial condition and paying down its debt, and it doesn’t have a lot of liabilities …,” Offerman told the board June 27.

During 2011, the district’s total assets increased by $718,504 — 1.69 percent.

“… The district has $43.2 million of assets. Your assets were up about $700,000, or about a 1.7-percent increase in your assets (over the previous year),” he said. “At the same time, the district’s liabilities went down significantly. Your liabilities went from $10 million to $8.2 million. Your liabilities are down $1.8 million or a 17.5-percent drop in the district’s liabilities during the last fiscal year …”

During 2011, the district’s net assets increased by $2,473,297 — 7.61 percent — to $34,953,841 from $32,480,544.

The district’s revenues in 2011 increased by $632,057 — 3.08 percent — to $21,123,819 from $20,491,762.

The largest increase in revenue was from charges for services — ambulance billing and permits, Offerman said. Charges for services increased by $601,258 — 14.6 percent — to $4,720,844 from $4,119,586, while property-tax revenue for 2011 declined 0.03 percent — to $16,096,267 from $16,101,358.

The district’s expenses increased during 2011 by $438,442 — 2.41 percent — to $18,650,522 from $18,212,080.

“… Actually, the district doesn’t have a lot of debt and is actually very liquid …,” Offerman said. “… Your long-term liabilities, you’ve been paying those down the last three years, and your long-term liabilities are at about $5 million — just under $5 million, $4,913,000 …”

Long-term liabilities include long-term debt totaling $2,670,585, a net pension obligation of $2,211,805 and a net other post-employment benefits obligation of $29,900.

The district’s overall fund balance decreased by $2,868,773 during 2011 — to $21,267,299 from $24,136,072.

“… That was principally because the district had a lot of capital projects during the year,” Offerman said. “You spent $4.3 million on capital assets, and those get expensed when you buy them, and also, you paid off another $205,000 on the long-term certificates of participation notes …”

A total of $3.61 million in certificates of participation, or COPs, were issued in May 2000 to fund the expansion and renovation of the district’s No. 5 firehouse and administrative headquarters on Mueller Road in Green Park. In July 2005, the Board of Directors voted to refund the COPs issued in 2000 with a savings of more than $240,000 in interest payments.

During fiscal 2011, the district reduced its liability for accrued sick leave by $1,487,347 — to $897,897 from $2,385,244. The accrued sick-leave liability was reduced through attrition and a $1.1 million payout to employees.

“For 2011, the district’s financial position has remained solid while property taxes levied were increased moderately,” the report stated. “The 2012 budget and future forecasts continue to show that services to the district’s taxpayers can continue based on the current property-tax levels. The district has continued to work hard to reduce expenses wherever possible. Most of the cost-savings policies and procedures that promote the district’s financial stability are in place and are summarized as follows:

• “Continued implementation of the cross-trained fire/medic staffing and ALS (Advanced Life Support) equipped pumpers.

• “Reduction of the sick-leave liability through attrition.

• “Implemented a Health Savings Account — HSA — benefit coupled with a high-deductible health plan that allows the district to continue to provide health-insurance benefits to employees while managing the rising costs of insurance premiums.

• “Abolished employer self-funded disability and death benefits on future claims.”

The district’s 2011 tax rate of 69.7 cents per $100 of assessed valuation was “the lowest rate of all fire districts in St. Louis County for the sixth year in a row,” the report stated.

The report also indicates several upgrades in service during 2011, including:

• “The district purchased a new ambulance and provides the largest ambulance service of all fire districts in St. Louis County.

• “The district replaced and put into operations a new rescue squad, which included specialized training for the personnel who staff the rescue squad and new equipment with greater capabilities to respond to structural collapses and confined spaces.

• “The district was the first fire district in St. Louis County to implement a physical abilities test to verify an employee’s physical aptitude for firefighting responsibilities. The district mandates successful completion of this test for continued employment.

• “The district maintained two highly trained operations teams to address high-angle rope rescue and water rescue.

• “The district’s child safety seat program implemented in 2006 has installed over 1,000 safety seats at no cost to residents.”

Budgetary reforms highlighted in the 2011 report include:

• “Safety and administrative reforms have resulted in consistent reductions in workers’ compensation premiums, which have consistently decreased from $893,000 in 2005 to $524,000 in 2011.

• “Construction that resulted in substantial completion of a new Engine House No. 3 was fully funded by current-year tax revenues and reserve funds. Future capital-asset investments are scheduled to be paid for with current-year tax revenues and no debt financing.

• “The district applied for and received a grant through the Federal Emergency Management Agency — FEMA — to fund over $90,000 of rescue equipment and rescue training.

• “Voters approved the district-initiated Proposition S, which allowed the district to combine the general fund and ambulance fund, which provides for administrative efficiencies.”

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